USD/BRL continues its descent towards the 4.8180 June low and is set to remain under pressure while trading below the 5.1976/5.2238 September and November lows, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.
“USD/BRL topped out at its October high at 5.8082 and continues to slither towards the June low at 4.8180. Below 4.8180 a 2019-2020 support line can be spotted at 4.6015.”
“Immediate downside pressure should be maintained while the currency pair remains below the 5.1976/5.2238 September and November lows as well as the December 9 high on a daily chart closing basis.”
“Further resistance can be found along the 200-day moving average at 5.3692. Above the next higher 55-day moving average and November 13 high at 5.4631/5.5264 sit the August and early October highs at 5.6636/5.6924. Above the next higher 5.8082 October high lies the May peak at 5.9710.”
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